Auto Insurance
Car Insurance Policies
What is auto Insurance?
Auto insurance protects you against financial loss if you have an accident. An auto insurance policy is comprised of 5 different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you are financing a car, your lender may also have coverage requirements. The types of auto coverage include:
LIABILITY COVERAGE
Liability Coverage is composed of bodily injury and property damage coverage types. Bodily injury coverage pays for injuries suffered by others in an accident that you have caused. Property damage coverage pays for damages that you cause to another person’s property in an accident.
UNINSURED AND UNDERINSURED MOTORIST COVERAGE
Uninsured/underinsured motorist coverage offers protection for injuries received as a result of a negligent driver. An uninsured/underinsured driver is someone who/whose:
- Did not have any insurance
- Had insurance that did not meet state-mandated minimum liability requirements
- Had an inadequate amount of insurance
- Insurance company denied their claim
- Insurance company was not financially able to pay it
Should you be involved in an accident where the “at fault” driver lacks adequate liability insurance, your own uninsured/underinsured motorist coverage will cover you.
COMPREHENSIVE COVERAGE
Comprehensive auto insurance covers damages caused by incidents other than a car accident, including theft, fire, vandalism, weather, falling objects, and animal damage. It is not required by law, but it may be a good idea depending on the value of the car you’re driving. Oftentimes, drivers of financed or leased cars are required to get a comprehensive coverage to protect the investment of the car owner or lender.
COLLISION COVERAGE
Collision insurance is an optional coverage that pays the cost of repairing or replacing your vehicle when damaged in an “at fault” accident. Collisions can involve another vehicle or an object, like a guardrail or a tree. If you finance or lease your vehicle, your lender may require you to get collision insurance coverage.
MEDICAL PAYMENTS
Medical Payments insures against medical bills that you, your family members, your passengers, or any pedestrians incur as a result of an accident involving your car. It also covers any medical bills incurred if you or your family members are injured as pedestrians. Medical payments coverage pays regardless of fault.